Saturday, June 11, 2011

How Long Until QE3?

CNBC: Fed Will Buy $50 Billion of Treasurys in Final QE2 Push:

The flood of Federal Reserve money that has supported Wall Street and the rest of the U.S. economy for two and a half years will shrink to a trickle with the conclusion of the Fed's bond purchases announced Friday.

At the close of business Friday, reported: Stocks fall again; Dow below 12,000 level:

If the indexes continue their slide for another week, it would be the first time in 10 years that the market suffered a seven-week stretch of losses. The last such stretch began in May 2001 as the dot-com bubble deflated.

That sounds like Wall Street is preparing to ask for another round of Quantitative Easing to prop up the stock market.

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